QuadrigaCX, a cryptocurrency exchange in Canada says it’s unable to pay most of $262 million in holdings back to clients as its founder, Gerald Cotten, died in India unexpectedly in December 2018.

Cotton was the only person who had the password to the cold storage where the crypto funds are stored.

Cold Storage Issues for the Exchange

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As per a sworn affidavit filed with the Nova Scotia Supreme Court, Jennifer Robertson noted that the crypto exchange owes around $262 million to its customers in both crypto coins and fiat currency.

The exchange is seeking creditor protection as the majority of the company’s funds are in cold storage and cannot be accessed. Only a small amount is accessible in a hot wallet which is used for transfers.

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